SEC approves Philex capital hike to P8 billion

MANILA, Philippines - The Securities and Exchange Commission has approved the increase in capitalization of Philex Mining Co. from P5 billion to P8 billion, paving the way for the mining firm’s planned 25 percent stock dividend declaration.

Of the new capitalization, P4.86 billion has been subscribed and paid.

Shareholders an record as of June 8, 2009 are entitled to the stock dividend.  Payment date has been set on June 23.

In the first quarter this year, Philex posted a net profit of P445.7 million, down 57 percent from the same period last year owing to lower copper prices and metal production.

Operating revenues dropped 39 percent to P2 billion due to a 45-percent decline in realized copper price to $1.93 per pound.

From P1.8 billion in 2008, the company’s net operating income likewise went down to P530 million.

The company reported a P35.1-million net loss from foreign exchange transactions due to higher peso-to-dollar closing rate of P48.419 as of March 31, 2009 from P47.52 as of end-December 2008.

As of March 31, 2009, Philex had total assets of P8.3 billion, 34 percent lower than the P12.5 billion balance as of the beginning of the year, mainly because of the decreases in cash.

Philex is eyeing a net income of up to P4 billion this year on the assumption that copper prices will hit $2.5 per pound and gold $1,000 per ounce.

Should current prices stay, Philex’s net earnings are forecast to reach P2.8 billion or the same as last year’s level.

Philex has set a capital expenditure budget of P2 billion this year, P885 million of which will go to exploration projects.

The company is looking at other possible mining investments in Asia Pacific like Indonesia and Australia.